Posted on 02/26/2009 8:53:57 AM PST by icwhatudo
For those who want us to believe the world is in a credit crunch, where no one is lending, and no one can qualify for a mortgage------
For the first two months of this year, an un-named credit union is closing approximately 213 first mortgages (not home equity loans or home equity lines of credit) to the tune of $49.35 million dollars.
Now, truth be told, only 18 of those 213 loans, or less than nine percent were purchase money loans; the rest were refinances. But, if you have good credit and you have equity, you can still get credit.
This announcement brought to you by your local credit union and no one had to approve this message
FYI – you will need a credit score of at LEAST 740 avoid any add-ons to your interest rate. This means if you see a 30 year fixed for 5.25% and your score is a 730 (pretty good score), the lender will still add .125% to your rate for the “risk factor.” You can thank Freddie Mac’s poster child, Barney Frank, for all the home ownership programs he came up with about six years ago to give all potential home owners access to mortgage money with just a 620 score, and no money down; this is why you have rate add-ons now.
Our credit union gave us more line of credit so we could pay off our CitiCard balance (since they just bumped our rates to 16%). No problemo.
Qyick mind math says that makes the average loan size $250K..any special meaning in that?
I heard a banker say last month was one of their best months in years due to refinancing.
The problem now is that the stock market sees what the "solutions" will do, long term, and they are reacting accordingly. Making it a self-fulfilling prophesy!
My credit union 15 year fixed with zero points and approximately 2500.00 closing costs is at 4.75% as of today.
Problem is for refinances you need to add a quarter of a percent to 5%.
Agreed. The hometown bank here is advertising they're giving loans and mortgages.
Here in North Dakota the only place you can get a loan to purchase a home is one of the largest cities. In small town North Dakota you cannot get a loan unless it is from a bank in the town and then you have to meet old fashioned criteria. The problem is that banks require three comparable sales within the past six months in the town where you want to buy or they will not lend (the big banks, that is). This comes from the president of our local bank in a conversation on Tuesday of this week. They will loan money but you have to have a substantial down payment and the loan will be for five years with the balance due after five years. On the other hand, said bank which has three offices in North Dakota has no loans which are 30 or more days delinquent. We have a house loan but then we put almost 40 percent down. And we have enough cash on hand, in secure storage not in the bank, to make our payments for the rest of the year.
I’m in the process of a refi with a local bank. I’ve got a 795 FICO score, and sufficient equity and income. They are saying at least a 45 or 60 day lock because they are so swamped. I guess local servicing and a 4.75% thirty year fixed rate are appealling to lots of people!!
795?
who are you, Tim Geithner ?
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